The Expanding Courier Sector

The courier service has been dominated by the Post Office since inception. The industry is known for small profit margins and the Post Office has drawn ire for continued government subsidies to keep operating.

United Parcel Service, UPS, began operation in 1960. It wasn’t until 1975 that UPS moved its headquarters and began servicing all 48 contiguous states. Since this time, UPS has dominated the courier services system while the United States Post Office became the primary postal provider.

UPS sees growth and profitability.

UPS president, Myron Gray, discussed the economy saying, “The National Retail Federation just lowered its guidelines for the year from 4.1% to 3.6% but they expect rapid growth over the next 5 months and after a sluggish first quarter we see a pickup.”

UPS is saying consumer demand has picked up particularly when the National Retail Federation expects we’ll see ecommerce grow 14% by 2017 and we expect 150 million online purchases throughout this year.

Ecommerce has introduced several new dimensions to the American economy and parcel delivery is a key factor in all of them. Managing inventory throughout the United States can only be accomplished through company owned transportation or courier services companies.

How fast can a package be delivered?

The push for same day delivery is being studied and implemented on a city to city basis. Amazon, a great customer of UPS, just announced today it will be expanding same day delivery across 6 more cities including massive swaths of the east coast.

What is means to companies like Monarch Transport,  UPS and the domestic consumer is that they’re seeing trends in the retail industry. Those trends are more consumer flexibility and faster, reliable turnaround time. Giving the consumer additional options such as same day delivery through additional fees and charges and multiple delivery locations, UPS is setting the trend for a more consumer friendly delivery system.

Can we expect our packages literally delivered by air?

Drone delivery service is quite a ways off but being researched heavily by nearly all private companies. With the complex route delivery system ever facing challenges, the next logical step could be an air drop at the customer’s doorstep. Managing the continued rising cost of fuel and aging vehicle fleets, many anticipate a legal push to allow a drone based delivery system. The internet has positioned many businesses as well of millions of consumers in cost consuming rural delivery areas that cannot be overlooked.

“I would be shocked if courier companies weren’t considering this,” says Ryan Calo, a law professor specializing in drones and robotics.